Introduction

The most significant element that directly affects a company’s operational and functional operations is the business environment. These factors impact an organization’s growth, profitability, goodwill, market valuations, and performance. Decision-making processes are directly impacted by the two distinct components that make up the corporate environment: micro and macro. To extend their structure into new geographic areas, these elements have grown increasingly sophisticated for various (Reed et al., 2013). The Spanish fast fashion store Zara serves as the basis for this article.

Amancio Ortega and Rosalia Mera established this group in 1975. Zara is a global apparel company that sells its stylish and fashionable apparel in many nations. The types, goals, and sizes or scope of various organizations are all included in this paper. It also establishes the impact of the macroenvironment and the relationships between several departments. Finally, it illustrates how an organization’s strengths and shortcomings interact with the macroenvironment.

TASK 1

Types, Objectives, and Legal Structure of Public, Private, and Voluntary Organizations

Effectively achieving its target goals and objectives is crucial for a company organization. Different kinds of organizations are created in an economy with particular goals and purposes that they hope to achieve successfully. These businesses are categorized according to their future goals and objectives and might be either public, private, or voluntary. These organizations can have the following types and purposes

Private sector organisation-These companies were essentially founded to generate revenue and achieve desired expansion through their goods and services. Building strong relationships with clients is necessary for them to readily reap long-term rewards. These businesses are privately owned by an individual or group of individuals. Although private owners maintain proper supervision, they must also secure legal licenses from the national government (Reinhardt and Stavins, 2010). For instance, Zara is a private sector company that offers clients high-quality goods based on their demands and specifications.

Purpose of Zara– Provide clients with stylish and fashionable apparel and services based on their needs in order to increase competitiveness for other businesses operating in the same industries and to maximize the organization’s profitability and growth over the ensuing years.

Legal structure– Partnerships are privately held companies when two or more applicants sign a contract based on their shared understanding of how to do business.
A sole proprietorship is an organization that is essentially controlled by one person who manages all business operations using their own abilities and efforts. In such businesses, sole proprietors have appropriate control (Shigang, 2010).

Public sector organisation– These organizations were essentially founded to offer the general public high-quality services. These organizations’ primary functions include providing medical care, education, water, power, transportation, and law enforcement. Such organizations are properly within the jurisdiction of a nation’s government. The NHS, for instance, is a public sector organization that was founded to offer health care services to every person.

Purpose of NHS–

Give each client efficient, high-quality services while treating them with dignity and respect.

Legal structure– The central government is responsible for overseeing public sector organizations.  State government: According to Karagiorgos, Drogalas, and Giovanis (2011), these legal authorities give funds to oversee enterprises’ functional methods.
The local government offers several facilities to ensure that the business is managed properly.

Voluntary sector organisation– These organizations were essentially founded to provide social care services to the impoverished and in need. Organizations in the voluntary sector are not set up to maximize profits and revenue; rather, they serve the public interest. For instance, Oxfam is a nonprofit organization that promotes the welfare of the underprivileged. This organization’s primary goal is to eradicate poverty worldwide.

Purpose of organisation– Provide enduring assistance to those in need, eradicate global poverty, and offer health and education services for the general public’s benefit.

The size and reach of various organizations- A corporate organization must analyse the size and scope of its market, which may differ from others. These elements may be derived from the company’s long-term goals and ambitions. An organization’s size considers its operational operations, geographic values, and employee strength. Customers of goods and services, brand loyalty in the target market, and the organization’s treading policy in several nations are all included in the scope of the organization. Each of these elements contributes to the efficient management of organizational operations.

Zara–

Size and scope: Amancio Ortega and Rosalia Mera founded Zara, a Spanish fast fashion shop, in 1975. The company operates about 2200 locations across the globe (Kolk, 2016). Many staff operate in these establishments, offering their efficient services and contributions based on the needs and desires of the clients. Vision and mission: Zara is a global apparel company with several accolades over its history. Maximizing the number of clients is the primary goal of this company’s mission to facilitate growth and long-term benefits. To create significant rivalry for other businesses, Zara aims to create the most elegant and fashionable apparel for its clientele.

NHS

The NHS is a public sector organization that was founded to offer health care services to everyone, regardless of size. This organization features a sizable company structure that appropriately maximizes its service regions. It is necessary for them to properly manage their healthcare activities (Nishitani et al., 2012). Vision and mission: This organization’s primary goal is to analyze each person’s needs and requirements to provide them with excellent healthcare services. They can quickly and appropriately establish direct connections with service users in this way. Their primary goal is to maximize healthcare services and activities for every person.

Oxfam

Size and scope: Oxfam is a nonprofit organization that was founded to provide social services in a nation. This company makes the most of its structure by offering each client better services. Due to its efforts to eradicate poverty worldwide, this company has a very wide geographic reach (Osterwalder and Pigneur, 2010). Vision and mission of Oxfam must be clearly defined based on their service criteria because they are a volunteer sector organization. This organization’s mission is to eradicate poverty in the nation. They accomplish this by offering healthcare and educational services that promote personal growth and development.

Relationships between various organizational departments and how they relate to goals

Many workers in a corporate organization contribute effectively to the easy achievement of target goals and objectives. Because of this, the company’s administration places workers in various areas according to their qualifications. These divisions’ functional approaches are connected to one another in the following ways:

  • The most crucial division of a company that aids in introducing goods and services to the intended audience is marketing. To increase the number of clients within their company, they employed a variety of strategies and resources. Employees in this division’s primary goal is to efficiently increase sales and the organization’s growth. Advertising, e-marketing, door-to-door promotion, and business-to-business (B2B) activities are examples of marketing and promotional methods used by organizations (Pulver, 2012).
  • The organization’s human resources department aids in the efficient management of functional and operational activities. They do this by hiring fresh talent who contribute to the successful achievement of organizational goals and objectives. One of the most crucial methods HR managers use in their work is recruitment and selection. To improve its workers’ abilities and skills, they also provide a variety of training courses.
  • Production and operation: Zara is a well-known apparel company that offers its clients high-quality services based on their demands. During this process, production department staff assist in offering clients high-quality services based on their requirements. The research and marketing department assists in this process by offering accurate data on the target market and clients. The most crucial organizational function that contributes to maximizing revenue and profitability is production.
  • Finance: The company’s finance department is crucial to properly maximizing the company’s investment and cash. A competent and knowledgeable individual who oversees all of the company’s financial, income, and investment-related transactions must be hired by this organization. By doing this, organizations can simply increase their efficacy and probability (Avramenko, 2012).

CONCLUSION

The business environment is the most significant element that directly affects an organization’s operational and functional operations, according to the report mentioned above. For this reason, the company’s management must devise a powerful plan to lessen the adverse effects of these elements. Internal and external variables are the two categories into which the business environment is divided. Both elements directly affect business operations and processes. The firm’s decision-making process is directly impacted by external environmental circumstances, which are out of its control. To spread their structure in new geographic areas, these elements have grown increasingly sophisticated.

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